Shale gas extraction becomes cheaper in Hungary
Today in Parliament the Hungarian government, with a majority, made an amendment in the law, reducing the drilling fee of shale gas drilling from 12% to 2%, which is more than puzzling, since despite the huge amount of Hungary’s resources, shale gas is hard to access in the country: in order to extract shale gas, the drilling has to go deeper, the use of chemical substances has to be increased, and the drilling will take place on densely populated areas. In addition, due to the demand for technology and capital, extraction is made possible for foreign companies only, whereas the Hungarian state could have only made profit through an increased drilling fee. Such a law will entail a greater risk for negative environmental consequences, the cost of which will be paid by the country and its citizens.
This post is also available in: Hungarian